"Gain In Services Sector Lift Stocks; Dow Up 180"-AP (1:24p EST)
NEW YORK (AP) -- Stocks rose Tuesday following news that activity expanded in the U.S. services sector last month. World markets also rose after the central bank of Japan surprised investors by slashing interest rates to near zero. The Institute for Supply Management reported that the U.S. services industry grew slightly faster in September as demand from customers improved. It was the ninth straight month of expansion in services, which have been growing at a slower pace in the U.S. relative to the much smaller manufacturing sector.
This is exactly what is going on in the US with Bernanke and the Fed.
"Robert Pavlik, chief market strategist at Banyan Partners LLC in New York, cites another factor in today's upward swing: Even when stocks have fallen lately, the S&P 500 has managed to stay above 1,130, a key technical barrier that it had broken through on Sept. 20. He said that has given jittery investors confidence to buy. "A lot of folks who have cash on the sidelines are being drawn into the market because they don't want to be left behind," Pavlik says. "I think there's potential to get to 1,200 by the end of the year." "